News Archive

Jan. 26, 2016

Countering the fear factor that has crept into forestry outlook. In light of the global stock market turmoil, the deep dive of the Canadian dollar and the ongoing commodities sell-off, what is the outlook for B.C.’s forest sector? To view the full text of this column by Peter Woodbridge for Business in Vancouver, click here.

Sep. 15, 2015

Wall of cheap Canadian wood to surge south when deal expires. Christmas will arrive early for American buyers of Canadian softwood lumber. The nine-year old Canada-US Softwood Lumber Agreement expires shortly. Hamstrung by a 12-month standstill agreement, the US cannot invoke any surprise emergency trade measures in the interim. But the ogre of US protectionism hovers over the Canadian party. Lobbyists and policy-makers’ meetings in Washington restart in earnest this month. To read the full text of this column by Peter Woodbridge for Business in Vancouver, click here.

May 12, 2015

Lumber investors recalibrate expectations as supercycle stalls. Investors in lumber stocks are feeling dismayed at the sector’s recent price performance. Confounding bullish expectations, prices are well off their recent highs. In explaining why lumber stock prices have fallen so quickly recently, it’s clear that Canadian lumber supply is the villain in the story. To read the full text of this column by Peter Woodbridge for Business in Vancouver, click here.

Mar. 31, 2015

Nova Scotia pulp & paper sector back from brink of disaster. Three years ago, Nova Scotians were stunned by the closure of two of the province’s long established pulp and paper mills. Today, the story is very different. Nova Scotia’s pulp and paper sector has pulled back from the ‘brink of disaster’ of the 2012 meltdown. The industry is smaller, but it is much leaner, more productive and more globally competitive—with an increasingly optimistic outlook and future. A healthy pulp and paper sector is essential for Nova Scotia’s forest economy. Without it, the province’s small wood lot owners, loggers and lumber producers will lose out on the widely anticipated lumber super cycle. To read the full text of this article by Peter Woodbridge for Pulp & Paper Canada, click here.

BC’s pulp industry receives belated export market recognition. BC business has a wary eye on the direction of China’s economy—not least BC’s sawmillers. So far in 2014, their softwood lumber exports have experienced flat demand growth in China and lower prices. Not widely known, however, the value of BC’s pulp exports to China exceeds that of softwood lumber—by a significant margin. And the longer term export demand outlook for BC’s long-fibred pulp is good. To read the full text of this column by Peter Woodbridge for Business in Vancouver, click here.

Mills question recovery strength. Expectations for US lumber demand recovery during 2014 started off the year modestly. At the halfway mark, those expectations continue to be revised downwards. Similarly, lumber demand from China is well below expectations. Lack of mortgage lending is stymieing the US housing recovery. But confidence remains that better times are ahead. To read the full text of this article by Peter and Michael Woodbridge for Timber Trades Journal, click here.

Political leadership needed to reform B.C.’s inefficient forest tenure. The tragedy of the current tenure system is that Crown forests in B.C. currently achieve one of the lowest levels of timber productivity in the western world. But one good thing arising from the pine beetle tragedy is an emerging recognition that it’s time for structural changes in B.C.’s timber supply model. In other words, bold tenure reform. Whether there’s an appetite for it in Victoria depends on how much leadership either this government, or the next, is willing to show. To read the full text of this column by Peter Woodbridge for Business in Vancouver, click here.

Province of British Columbia, Special Committee on Timber Supply. Public Hearings – Merritt, BC. To see a transcript of Peter Woodbridge’s presentation to the Special Committee, please see pages 36-41. This presentation suggests that there are better ways than the existing system to grow trees, allocate them competitively and manage the Crown timber life cycle without resorting to privatization of the public forest lands.

Cuts to U.S. housing subsidies could hit B.C.’s lumber sector hard. Vancouver’s residential real estate commands high prices. In contrast, low house prices in most U.S. sunbelt markets are bargains today for many snowbird Canadians. It’s all a question of market-based demand. Or is it? To read the full text of this column by Peter Woodbridge for Business in Vancouver, click here.

Canada’s timber industry awaits US recovery. With housing starts in the US – Canada’s major market – struggling to reach 585,000 units this year, compared with more than two million at the market peak in 2005, why is Canada’s sawmilling industry not in much worse condition than it actually is today? When is demand in Canada’s key lumber markets expected to recover? To read the full text of this article by Peter Woodbridge for Timber Trades Journal, click here.

Economic Impact Analysis of Timber Management and Supply Changes on Nova Scotia’s Forest Industry. Prepared for the Province of Nova Scotia, this report provides an economic impact analysis of proposed timber management and supply changes on Nova Scotia¡¦s forest industry. To download a copy of the main report and supporting documents, click on each of the following links: Main Report; Wood Supply Scenarios, Non-Industrial Private Non-Participation Scenarios.

China trade boom throws a curveball at Asia-Pacific gateways as container squeeze threatens commodity flow. Faster than expected growth in China’s demand for B.C.’s forest products is running up against unexpected constraints in the province’s Asia-Pacific gateways. It’s not just an immediate shortage of backhaul containers that’s stumping shippers. Signs indicate a longer-term chronic under-capacity of infrastructure and facilities – if B.C. is to take full advantage of current and longer-term export opportunities to Asia-Pacific markets. To read the full text of this column by Peter Woodbridge for Business in Vancouver, click here.